BlackRock Director Brazier: The Federal Reserve and the Bank of England are expected to raise interest rates by 25 basis points each

According to reports, Alex Brazier, deputy director of the BlackRock Investment Research Institute and former member of the Bank of England’s Financial Policy Committee, said that the Federal Reserve may raise interest rates by 25 basis points today, while the Bank of England will “generally” raise benchmark interest rates by the same amount on Thursday. “I think (the Federal Reserve) will raise interest rates by 25 basis points today, and then possibly again, with interest rates slightly exceeding 5%,” Brazier said. Brazier said that the market turmoil of the past few weeks had already had an impact, so the Federal Reserve did not have to raise interest rates too much.

Interpretation of this information:

In light of recent market turmoil, Alex Brazier, a former member of the Bank of England’s Financial Policy Committee and deputy director of the BlackRock Investment Research Institute, predicts that the Federal Reserve will raise interest rates by 25 basis points today, and potentially again in the future, ultimately bringing the rates above 5%. Additionally, he suggests that the Bank of England will “generally” follow suit and raise benchmark interest rates by the same amount on Thursday. However, Brazier acknowledges that the market turmoil may have already impacted the economy, which may limit the need for large-scale interest rate hikes.

The message suggests that despite market instability, the Federal Reserve and Bank of England may still proceed with raising interest rates, albeit cautiously. Brazier’s prediction that the rates may exceed 5% in the future may indicate a larger trend towards stricter monetary control. This could have wide-ranging implications for borrowers and investors.